Thursday, April 05, 2007
A novel credit card scam: exercising a little due diligence, an internal auditor uncovers an attempt by a former employee to defraud the company
JENNIFER, THE ASSISTANT Jennifer treasurer at ABC Corp. in New Orleans, opened an e-mail from a former colleague who no longer worked for the organization. The e-mail read: "Hi Jennifer, there should be a refund of $716 on my old corporate Visa card from the IP Conference. I paid for, but did not attend, the conference and did not turn in the charge to ABC for reimbursement. Can you have Visa issue a refund check to me? Thanks very much for your help."
The e-mail was from Larry, a former ABC executive who had been Jennifer's boss at one time. The message seemed innocuous enough. Larry had legitimately charged a business conference to his corporate credit card, but he had canceled his registration because he left the company. Therefore, he was due a refund.
It would have been very easy for Jennifer to trust her former boss and get him the refund. Instead, because something didn't seem quite right, she chose to check on whether ABC had already reimbursed Larry for the conference.
The e-mail was from Larry, a former ABC executive who had been Jennifer's boss at one time. The message seemed innocuous enough. Larry had legitimately charged a business conference to his corporate credit card, but he had canceled his registration because he left the company. Therefore, he was due a refund.
It would have been very easy for Jennifer to trust her former boss and get him the refund. Instead, because something didn't seem quite right, she chose to check on whether ABC had already reimbursed Larry for the conference.
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